DOJ gets authority to seize $1.2 billion in Binance crypto

The U.S. Justice Department said Thursday, Nov. 12, it had court authorization to seize or restrain more than $1.2 billion in cryptocurrency stolen from Binance in October. The department said the amount is part of more than $2.7 billion frozen through joint U.S. government and private-sector efforts, according to the Justice Department announcement.

The FBI attributes the theft, which took place on or about Oct. 29, to members of the North Korean military it calls TraderTraitor. The Justice Department said the group stole more than $6 billion in virtual assets from the exchange.

The seizure authorization covers more than $1.2 billion of the frozen funds. The department said efforts to trace, freeze, seize and forfeit the assets are ongoing as TraderTraitor actors continue laundering them through cryptocurrency bridges, mixers and exchanges.

The FBI said it had seized more than $1.2 billion, while the Justice Department specified that it had obtained court authorization to “seize or restrain” that amount. The Associated Press reported that the $1.2 billion is included in the more than $2.7 billion frozen by government and private-sector partners.

The Justice Department said the FBI, Secret Service and IRS Criminal Investigation worked with virtual asset service providers to interdict the funds. The department’s announcement did not say how much of the $1.2 billion had been transferred into government custody.

In a typical forfeiture case, the U.S. government files a claim with a judge, who decides who has a legitimate claim to recovered assets, the Associated Press reported. The Justice Department said the tracing and forfeiture work remains underway.

Sources

• Justice Department announcement — justice.gov
• Associated Press reported — apnews.com